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This article examines the measures taken by the Chinese government in the real estate sector from 2005 to the first quarter of 2009 in order to get a better understanding of related policy developments. A multivariate regression analysis was performed to determine the effect of such measures, especially credit control, on growing real estate development investments after the financial tsunami. The results indicate that adjusting the money supply in order to influence interest rates could be more effective than long-term measures such as land supply or administrative policies. Importantly, the study concludes that interest rates are market measures that allow the economy to adjust more freely without building up bubbles again, as opposed to mandatory and interventionist government policies. [ABSTRACT FROM AUTHOR]